Vehicle benefits

Car Benefit

The taxable benefit is calculated as a percentage of the list price of the car, on the day before it was registered, plus certain accessories. The percentage depends upon the rate at which the car emits carbon dioxide (CO2), and the fuel type.

You can find the appropriate percentage for 2017/18 using the following table.

CO2 emissions

Appropriate percentage

(g/km)

Petrol %

Diesel %

0 - 50

9

12

51 - 75

13

16

76 - 94

17

20

95 - 99

18

21

100 - 104

19

22

105 - 109

20

23

110 - 114

21

24

115 - 119

22

25

120 - 124

23

26

125 - 129

24

27

130 - 134

25

28

135 - 139

26

29

140 - 144

27

30

145 - 149

28

31

150 - 154

29

32

155 - 159

30

33

160 - 164

31

34

165 - 169

32

35

170 - 174

33

36

175 - 179

34

37

180 - 184

35

185 - 189

36

190 and above

37

CO2 emission information

For cars registered from March 2001, the definitive CO2 figure used to calculate company car tax will be that shown on the car's V5 (Registration Document). The Vehicle Certification Agency (VCA) supplies CO2 (and other emissions) data. Information on CO2 emissions for both new (unregistered) and used (registered) cars can be found here.

Cars registered before 1 January 1998

Reliable emissions data is not widely available for cars registered before 1 January 1998.

Taxable percentages regardless of fuel type for cars registered before 1 January 1998

Engine capacity

Taxable %

Up to 1400cc

15%

1401 - 2000cc

22%

Over 2000cc

32%

Car fuel benefit

The taxable car fuel benefit, for 2017/18, is calculated by applying the CO2 based car benefit percentage to the car fuel benefit charge multiplier of £22,600.

If the employee pays for the full cost of all fuel for private journeys (usually including home to work) there will be no car fuel benefit. In all other cases the full tax charge will be due.

HMRC advisory mileage rates from 1 December 2017 for employee private mileage reimbursement or employer reimbursement of business mileage in company cars are:

Fuel-only mileage rates for petrol and LPG

Engine Size

Petrol

LPG

1400cc or less

11p

7p

1401cc - 2000cc

14p

9p

Over 2000cc

21p

14p

Fuel-only mileage rates for diesel

Engine Size

Diesel

1600cc or less

9p

1601cc - 2000cc

11p

Over 2000cc

13p

Example

A company car driver has a car which, on the day before it was first registered, had a list price of £21,000. It runs on petrol, and emits 177g/km of CO2.

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